GuocoLand's full-year net profit halves to S$114m, proposes 6 cents per share dividend

GUOCOLAND on Monday reported that its full-year net profit has halved year on year to S$114.1 million, largely due to the absence of fair-value gains on investment properties. 

Still, the group has proposed a first and final ordinary dividend of 6 Singapore cents per share for FY2020 ended June 30. 

Full-year revenue was up 2 per cent on the year to S$941.8 million, mainly due to an increase in revenue from the property-development business, although this was partially offset by a decline in revenue from the hotels business amid the pandemic, said GuocoLand. 

Specifically, revenue from the group's property-development business increased by about 5 per cent year on year, but revenue from hotels fell by close to 30 per cent year on year. 

Meanwhile, the group's other income fell 32 per cent on the year to S$162.6 million. This is mainly due to the absence of fair-value gains on investment properties in the current year, the group said. 

It said it is "paying close attention" to the Covid-19 situation and the impact on the group's property-development and investment activities. Construction of the group's ongoing development projects in Singapore, China and Malaysia have resumed. 

As at June 30, GuocoLand had net debt of S$4.3 billion and gearing of 1x. 

Shares of GuocoLand closed up 0.72 per cent at S$1.40 on Monday before the announcement.